【Carburant】Electric Arc Furnace Operation Rate Rises, 

Providing Some Support to the Carburant Demand Side Market

The carburant market prices continue a weak and stable trend, with the electric arc furnace operation rate increasing compared to the previous week. Downstream demand continues to focus on just-in-time procurement, and the market shipment situation is moderate. With successive waves of cold air hitting, some steel mills have reported an increase in sick workers, leading to an insufficient number of workers available for normal operations. Consequently, there is a need to adjust production schedules, resulting in a slight reduction in production. Learn more about the performance characteristics of graphitized carburant products.  

Data Source: Oilchem

 Regarding prices: The overall atmosphere in the carburant market during this period is moderate. In terms of calcined coal, carburant market prices remain generally stable. Domestic coal supply is relatively sufficient, and the market's supply and demand situation is relatively balanced, with slight fluctuations in coal market prices. The cost support for the carburant market in the calcined coal sector is still acceptable, with most manufacturers maintaining normal production, and the shipment situation showing no obvious improvement. In terms of calcined petroleum coke (CPC) and graphitized petroleum coke carburants (GPC), the raw material, petroleum coke, continues its downward trend in prices. Downstream procurement demand is cautious, especially for low-sulfur calcined petroleum coke, which is running weak and stable. Shipments of graphitized carburants are moderate, and downstream deliveries are mainly driven by just-in-time demand. Manufacturers are mostly maintaining low-load production, with some price adjustments. Considering the overall raw material costs and downstream demand, it is expected that the carburant market prices will be weak and stable in the near term.

Data Source: Oilchem

Regarding downstream demand: This week, the independent electric arc furnace operation rate in China is 75.16%, an increase of 0.52% compared to the previous week and an increase of 13.69% year-on-year. Looking at specific situations for the week, a steel mill in Jiangsu, East China, has resumed production due to an increase in medium and thick plate orders, reaching a daily output of about 4,000 tons. In the Southwest Sichuan region, another steel mill has resumed the operation of its second 50-ton electric arc furnace, reaching a daily output of about 4,000 tons. Overall, there is some support for downstream demand.

In summary, with narrow adjustments in raw material prices and an improvement in downstream trading, steel mills that were shut down for maintenance this week are expected to resume normal operations next week. The independent electric arc furnace operation rate and capacity utilization rate may see a slight increase. The carburant market's demand side is expected to have some support. In the near term, it is anticipated that the domestic carburant market prices will remain weak and stable. Some manufacturers may be affected by environmental policies and cold air, which could impact shipments. Keep tracking the dynamics of the carburant market. Feel free to contact us.